Paulson Hedge Fund Sued Over $460M Sino-Forest Loss

Law360, New York (February 21, 2012, 3:57 PM EST) -- An investor in billionaire John Paulson's hedge funds filed a putative class action in Florida on Tuesday alleging Paulson's firm failed to properly vet Sino-Forest Corp. before buying shares of the forestry company, eventually costing the firm roughly $460 million.

Hugh F. Culverhouse, a Miami-based investor and former federal prosecutor whose father once owned the NFL's Tampa Bay Buccaneers, claims Paulson & Co. Inc. conducted a "grossly negligent due diligence analysis" of Sino-Forest's timber operations in China before purchasing a 14 percent stake in the company...
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